Weekly Variable Rate Option Clause Samples
The Weekly Variable Rate Option clause establishes a mechanism by which interest or payment rates are adjusted on a weekly basis according to a specified benchmark or formula. In practice, this means that the applicable rate for a loan or financial product is recalculated each week, often based on prevailing market rates or an index such as LIBOR or SOFR. This clause allows for more responsive and up-to-date pricing, ensuring that payments reflect current market conditions and helping both parties manage interest rate risk more effectively.
Weekly Variable Rate Option. At a rate per annum equal to the rate of interest established by CoBank on the first Business Day of each week (the “Variable Rate Option”). The rate established by CoBank shall be effective until the first Business Day of the next week and each change in the rate shall be applicable to all balances subject to this option. Information about the then current rate shall be made available upon telephonic request.